Winston Hotels Acquires Historic Park Lane Building

30 December 2004

Winston Hotels, Inc, a real estate investment trust and owner of premium limited-service, upscale extended-stay and full-service hotels, today announced the acquisition of a six-story historic residential building in Kansas City, MO for $3.1 million. The apartment building, which was constructed in 1926, is adjacent to Country Club Plaza, Kansas City’s premier shopping and entertainment district. The property will undergo extensive renovations and be converted to a 123-room Courtyard by Marriott hotel with an estimated all-in cost of approximately $16.7 million, net of tax credits totaling $7.7 million. The renovations, which are scheduled to begin during the first quarter of 2005, will include construction of a structured parking facility. The conversion will completely renovate the rooms, create a lobby, meeting rooms, and fitness facility. We expect the Courtyard by Marriott to open during the second quarter of 2006. Alliance Hospitality will manage the hotel.

“We received approval to list the property in the National Registry of Historic places,” said Joe Green, Winston’s president and chief financial officer. “We intend to take advantage of the architectural significance of the building, which we believe will give us a competitive edge. This is our second adaptive re-use of an historic property, and we continue to seek opportunities in this niche.

Designed as one of the nation’s first suburban shopping districts, the 14-square block Country Club Plaza is currently an outdoor “museum,” featuring romantic Spanish architecture and European art. Built in 1922, the area features fountains, sculptures and murals and some of the city’s most exclusive shops, restaurants and entertainment outlets. ——-